Ever wondered exactly about the role of the Committee, how it gets elected and what the Executive Committee members are supposed to do?
We’ve put together this overview, which we hope makes it easy to understand the “whys” and “whats” of a body corporate committee.
Why is a Body Corporate Committee necessary?
In Queensland, it’s a legal requirement that a Body Corporate must appoint a Committee, and the Committee is responsible for the day-to-day running of the body corporate. The members of the committee are chosen at each Annual General Meeting.
A valid Committee consists of a minimum three and a maximum seven members, which must include a Chairperson, Secretary and Treasurer, and then if applicable, Ordinary Committee Members. There are exceptions to this rule, for example, schemes that are under the Small Schemes Module, only require a Secretary and Treasurer.
What do the Committee office holders do?
There is often confusion over what duties each Executive Committee member is expected to do, so the following information offers a suggested list of tasks that each position may be expected to perform.
Body Corporate Committee Chairperson
May be required to seal documents with the body corporate seal.
- Can call meetings in the absence of the Secretary.
- Ensure that Committee meetings and general meetings deal with the agenda items and accepts other matters raised at the meetings for consideration.
- Chairs each meeting.
- Declares whether or not a quorum is present, and can adjourn a meeting for lack of a quorum.
- Does not have a casting vote at a committee meeting.
- Rules motions out of order at general meetings if necessary.
- Declares the results of voting at a general meeting, and states the votes for, against and abstained.
Body Corporate Committee Secretary
- Calls committee and general meetings.
- Receives committee nominations and proposed motions, and acknowledges receipt of such.
- Issues meeting notices and minutes to all Lot owners.
- Accepts voting papers from voters, and proxy forms.
- Takes and distributes minutes of committee meeting and general meetings.
Body Corporate Committee Treasurer
- Prepares annual budgets for the Administrative and Sinking Funds.
- Calculates the contributions to be levied for the Administrative and Sinking Funds and any other special or interim contributions.
- Prepares and distributes levy notices to Lot owners.
- Undertakes recovery action for unpaid contributions.
- Keeps the accounting records for the Administrative and Sinking Funds, and reconciles the bank account/s.
- Prepares statements of accounts, and arranges to have them audited if required.
- Pays/approves invoices.
Is the role of the Committee different to that of the Body Corporate Manager?
In many schemes, the Committee will engage a body corporate manager to help with some or all of the administrative duties, including the work undertaken by the Secretary and the Treasurer. The duties of the manager are contained in a written engagement entered into with the body corporate.
If a body corporate is unable to elect a committee, it can pass a motion at a general meeting to engage a manager to take on the day to day running of the Scheme.